The first step in cash budget preparation is the ____________.
A) estimation of credit sales
B) estimation of the expected cash disbursements
C) scheduling of disbursements
D) estimation of cash receipts

Question

Quizplus · Accepted Answer

The first step in cash budget preparation is the estimation of cash receipts. This involves analyzing the expected sources of cash inflows, such as sales revenue, collections from customers, and other cash receipts. Once the cash receipts are estimated, the next steps involve estimating the expected cash disbursements, scheduling of disbursements, and estimation of credit sales.

The First Step in Cash Budget Preparation Is the ____________